Centerac Technologies Ltd Management Discussions

Global Economy

Global growth is projected to remain stable, although the global economic outlook continues to be influenced by geopolitical tensions, inflationary pressures, monetary policy developments and other economic uncertainties. The near-term outlook remains subject to divergent growth trends across economies, while medium-term risks to global growth continue to remain.

The global economy is expected to remain resilient, supported by continued economic activity and gradual moderation in inflationary pressures. However, geopolitical developments, trade restrictions and changing economic policies may continue to impact global growth.

Indian economy

India continues to remain one of the fastest-growing major economies, supported by strong domestic demand, infrastructure development, increasing digitalisation and continued policy support.

The Indian economy has demonstrated resilience despite global economic uncertainties. Continued investments in technology, digital infrastructure and various sectors of the economy are expected to provide opportunities for businesses operating in the Information Technology sector.

Industry Overview

The global Information Technology industry continues to evolve rapidly, driven by increasing adoption of cloud computing, artificial intelligence, cybersecurity solutions and digital transformation initiatives across various sectors.

The Indian IT sector continues to benefit from its strong talent pool, cost competitiveness and increasing adoption of technology. Demand for next-generation technologies such as data analytics, Internet of Things (IoT), artificial intelligence and machine learning continues to provide opportunities for growth in the sector.

Here is a pie chart illustrating the IT industry market size distribution, with segments like Cloud Services, Software Development, Cybersecurity, IT Consulting, and Others

Business Overview

The Company provides Information Technology Support Services. The Company continues to focus on providing IT support services to its customers and strengthening its business operations.

The Company seeks to leverage opportunities arising from increasing adoption of technology and digitalisation and continues to explore avenues for expanding its business and improving its operational performance

INDUSTRY STRUCTURE & DEVELOPMENT

The Indian IT industry continues to play an important role in the countrys economic development by contributing to employment, exports and technological advancement.

The industry continues to witness changes arising from rapid technological developments, changing customer requirements and evolving business models. The increasing adoption of cloud-based offerings, data analytics, mobile applications, artificial intelligence and other emerging technologies is making technology an integral part of business operations and is expected to provide continued opportunities for IT service providers.

OPPORTUNITIES AND THREATS

Opportunities:

• Rising demand for digital transformation and IT support services.

• Growing adoption of cloud solutions, SaaS and AI-driven automation.

• Increasing technology spending by SMEs and enterprises.

• Growing demand for technology-enabled business solutions.

Threats:

• Intense competition from global and local IT service providers.

• Rapid technological changes requiring continuous innovation and investment.

• Geopolitical and economic uncertainties.

• Rising cybersecurity risks and compliance requirements.

• The above opportunities and threats are broadly in line with the factors identified in the Companys existing MDA.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company provides Information Technology Support Service.

During the year under review, the Company continued to focus on its IT support service activities and on strengthening its business operations and customer relationships.

The Company generated revenue from operations of Rs. 74.27 Lakhs during the financial year ended 31st March 2026 as compared to Rs. 87.97 Lakhs during the previous financial year

OUTLOOK

The Company remains cautiously optimistic about its growth prospects, driven by increasing adoption of technology and opportunities arising in the Information Technology sector.

The strategic focus of the Company will remain on strengthening its existing business operations, improving service capabilities and exploring suitable opportunities for future growth.

Risk and Concerns

Key risks include market volatility, cybersecurity threats, technological changes, competition, talent retention challenges and regulatory changes in relevant markets.

The Company continues to monitor these risks and take appropriate measures to identify, manage and mitigate their potential impact on its business operations. The same risk categories were also identified in the previous MDA.

Internal Controls Systems and their adequacy

CENTERAC has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition, and that transactions are authorised, recorded and reported correctly.

The internal control systems are supplemented by management reviews and documented policies, guidelines and procedures. The internal control systems are designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets

Discussion on Financial Performance with respect to operational performance.

During the financial year under review, the Company has generated revenue from operations of Rs. 74.27 Lakhs as compared to Rs. 87.97 Lakhs generated in the previous year. The Company has earned a profit after tax of Rs. 2.99 Lakhs as compared to Rs. 3.87 Lakhs earned in the previous year.

The decrease in revenue and profitability during the year is primarily attributable to the overall level of business operations during the year. Your Directors are continuously looking for avenues for future growth of the Company

Material Development in Human Resources/Industrial Relations:

Company continues to focus on attracting and retaining suitable talent required for its services. The Company provides appropriate support and training, as required, to keep its professionals abreast of changes in technology.

The Company enjoys healthy relations with its customers, investors, employees, banks and various State and Central Government departments.

Employees remain an important asset of the Company. The Company continues to focus on employee development, training and creating a conducive work environment. As at 31st March 2026, the Company had 2 permanent employees on its rolls.

KEY RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector-specific financial ratios.

Ratios	2025-2026	2024-2025
Debtors Turnover	0.84	1.30
Inventory Turnover	N.A.	N.A.
Interest Coverage Ratio	0.03	1.31
Current Ratio	3.53	4.88
Debt Equity Ratio	0.22	0.19
Operating Profit Margin (%)	0.04	0.04
Net Profit Margin (%)	0.04	0.04
Return on Net Worth (%)	0.33	0.63

Change in Return on Net Worth:

The Return on Net Worth has decreased during the year under review as compared to the previous year. The net worth of the Company as at 31st March 2026 stood at approximately Rs. 9.18 Lakhs as compared to Rs. 6.18 Lakhs in the previous year .

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results may differ materially from those expressed or implied.

Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and other incidental factors. The Company assumes no responsibility to publicly update or revise any forward-looking statements on the basis of subsequent developments, information or events. The existing Annual Report follows substantially this same cautionary format.

Note: I have intentionally not retained last years claims such as Revenue growth of 27.78%, successful launch of in-house developed software products and strengthening of strategic partnerships, because those statements are not supported by the FY 2025-26 financial information you provided. The old MDA contains those statements.

CERTIFICATE OF COMPLIANCE WITH THE CODE OF CONDUCT OF THE COMPANY

As provided under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Board Members and the Senior Management Personnel have confirmed compliance with the Code of Conduct for the financial year ended 31 st March, 2026.

For CENTERAC TECHNOLOGIES LIMITED

SABEEN MOHAMED IQBAL WHOLE-TIME DIRECTOR & CFO (DIN - 03557534)

Place: Mumbai Date: 22 nd May, 2026